Latest / Buckeyes TomOrrow Morning / Does Ohio State Want The Big Ten And SEC To Turn Into A Super League?
Transcript
- 0:00Speaker 1: Welcome to Buckeyes tomorrow morning for Saturday, July fourth, I'm
- 0:03Speaker 1: your host, Tom or the ball State game in sixty
- 0:05Speaker 1: three days, the game against Michigan in one hundred and
- 0:07Speaker 1: forty seven days. Our friends at jeff Ruby's Columbus are
- 0:10Speaker 1: probably offering nationally acclaimed USDA Prime Stakes, seafood and sushi,
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- 0:19Speaker 1: slash Columbus to check out the menu and make a reservation. Today,
- 0:23Speaker 1: on today's show, you're going to get to hear a
- 0:24Speaker 1: little bit more from Ohio State Athletic Director Ross Bjorke
- 0:27Speaker 1: our conversation with him a little bit over a week ago.
- 0:30Speaker 1: At this point, he had a ton of interesting things
- 0:32Speaker 1: to say. Today's show, we're just going to be focusing
- 0:35Speaker 1: on sort of the future of college football a little bit,
- 0:39Speaker 1: the Super League, the potential of a Big ten SEC breakaway,
- 0:42Speaker 1: the TV deals or the TV deals with the different
- 0:45Speaker 1: leagues going to get cooled. How would that impact Ohio
- 0:47Speaker 1: State conference expansion? Is that something that could get outlawed
- 0:51Speaker 1: by Congress? Is that something that the Big ten in
- 0:53Speaker 1: SEC could try and jump the gun on a lot
- 0:56Speaker 1: of really interesting answers on a lot of that kind
- 0:58Speaker 1: of stuff. So let's do the negotiating the TV deals altogether.
- 1:04Speaker 1: That is something where you know, pulling your media rights
- 1:06Speaker 1: is the way it's been. It's been brought up in
- 1:09Speaker 1: conversation over the last few months. And the Big Twelve,
- 1:13Speaker 1: the acc oh, they are very much in favor of
- 1:16Speaker 1: the SEC. The Big Ten, well maybe not so much.
- 1:19Speaker 1: So what are Ross B York's thoughts and Ohio State's
- 1:22Speaker 1: thoughts on the idea of all the conferences pulling their
- 1:26Speaker 1: media rights and just going to the networks and having
- 1:29Speaker 1: one negotiation as opposed to the different leagues doing it
- 1:31Speaker 1: at different times.
- 1:33Speaker 2: I think, what does that mean? You know, what's what's
- 1:36Speaker 2: the purpose you know of that right? And we have
- 1:39Speaker 2: current contracts. You know, Fox owns our TV rights till
- 1:43Speaker 2: twenty thirty six, and so I believe, based on an
- 1:46Speaker 2: amendment last week, there was language inserted that current contracts
- 1:50Speaker 2: cannot be disrupted.
- 1:53Speaker 3: So even if let's just say that would.
- 1:54Speaker 2: Pass, how long is it going to take to have
- 1:59Speaker 2: that even happen? And then if it's voluntary, truly voluntary,
- 2:04Speaker 2: are we going to be forced into it through a
- 2:06Speaker 2: lawsuit or something like that. All of that has to
- 2:09Speaker 2: be structured in a way where, again, we have the
- 2:12Speaker 2: most amount of flexibility to operate like we see fit,
- 2:16Speaker 2: which is what we have now.
- 2:17Speaker 1: So if that does go through, and again there's a
- 2:20Speaker 1: long way before that would kick in. But would Ohio
- 2:24Speaker 1: State potentially lose money in a scenario where those media
- 2:27Speaker 1: rights would be pooled.
- 2:28Speaker 2: There's a lot of I would call it speculation on
- 2:33Speaker 2: what value really is in the marketplace. I don't think
- 2:37Speaker 2: anybody's been able to do a true analysis to say
- 2:40Speaker 2: this is what the TV packages are really worth. Right,
- 2:44Speaker 2: And if you talk to the TV executives, they will
- 2:46Speaker 2: tell you there's not a lot of new money in
- 2:48Speaker 2: the system, right, And so I think there's a lot
- 2:51Speaker 2: of speculation out there about value.
- 2:54Speaker 3: And what it means. Look, I know the viewership around
- 2:59Speaker 3: Ohio State.
- 3:00Speaker 2: I know our brand value, I know the data that
- 3:02Speaker 2: I just gave you, right, I know what our value
- 3:06Speaker 2: is worth. So to say would we lose money would
- 3:09Speaker 2: we make more? I have no idea how that would work.
- 3:11Speaker 2: I do know that we do have a TV window
- 3:15Speaker 2: that opens up around the CBS and NBC window that
- 3:19Speaker 2: expires in twenty thirty. Again it's part of Fox, So
- 3:24Speaker 2: actually we'll have some really good data to say, what
- 3:26Speaker 2: is the market going to yield when those contracts come
- 3:29Speaker 2: up for renegotiation or go out to market.
- 3:33Speaker 3: We'll have some data around that.
- 3:34Speaker 2: And I do believe there's an upside, but I also
- 3:38Speaker 2: know that the Big Ten is driving all that value,
- 3:41Speaker 2: and if you bring others along with you, does it
- 3:45Speaker 2: water it down. We don't know the answer to that
- 3:47Speaker 2: because no one has really tested that. And this theory
- 3:49Speaker 2: around pooling media rights has caught on, but nobody really
- 3:54Speaker 2: has a true roadmap of how it would work, who
- 3:57Speaker 2: would organize it, and then what's the best Those details
- 4:01Speaker 2: have not been flushed out.
- 4:04Speaker 1: One of the things that the bill going through Congress
- 4:06Speaker 1: right now is seemingly trying to avoid is a super league.
- 4:09Speaker 1: And the Big Ten and the SEC have both said
- 4:12Speaker 1: they don't really want that, but you know, if legislation
- 4:15Speaker 1: goes through that isn't what they want. Does Ohio State
- 4:17Speaker 1: sort of go along with the legislation or does that
- 4:20Speaker 1: maybe push some of those big teams into sort of
- 4:23Speaker 1: walking away from the rest of college football and forming
- 4:26Speaker 1: a super league.
- 4:27Speaker 3: I think it depends on what does that mean? What
- 4:29Speaker 3: does go along with what? Right?
- 4:31Speaker 2: Is there other things again that we could live with.
- 4:33Speaker 2: And let's just say we're talking about a federal bill.
- 4:34Speaker 2: I'm assuming let's just say there are things in there
- 4:37Speaker 2: that okay, if we get this, we're okay with this.
- 4:40Speaker 2: Those things have to be presented at some point in time,
- 4:42Speaker 2: and that that's kind of the next steps, you know,
- 4:44Speaker 2: in the process. You know, a super league can go
- 4:48Speaker 2: both ways, right if they could restrict us from expanding,
- 4:52Speaker 2: but what if other leagues would fall apart for some reason,
- 4:56Speaker 2: or what if some program emerges and they're ready to
- 5:00Speaker 2: take a leap and move up, which has happened in
- 5:02Speaker 2: the last you know, five to eight years, right, Well,
- 5:05Speaker 2: those programs are now restricted from moving up. So this
- 5:09Speaker 2: whole again, the construct of the language right now, can
- 5:13Speaker 2: go both ways. So I do think that's one of
- 5:15Speaker 2: the things that I think we'll see changed in the language.
- 5:20Speaker 2: You know, what does a super league mean? Is there
- 5:22Speaker 2: a definition of it? I haven't seen one? Is that
- 5:27Speaker 2: eighteen teams? Is that you know? I think Commissioner Sankie
- 5:31Speaker 2: said that they're a super league already and they don't
- 5:33Speaker 2: want the SEC network to have Ohio State on it, right,
- 5:37Speaker 2: that's their network. So that term got thrown out there
- 5:42Speaker 2: when people were talking about all FBS teams, all of
- 5:46Speaker 2: the power autonomy for conferences. But I haven't seen a
- 5:51Speaker 2: definition of this is what a super league means and
- 5:55Speaker 2: here's how it functions.
- 5:56Speaker 3: Nobody's presented that.
- 5:59Speaker 2: And I've seen proposal from every private equity firm, every
- 6:03Speaker 2: third party, every consultant. I've seen it all, but nobody
- 6:08Speaker 2: can really describe what it is.
- 6:10Speaker 1: He kind of got asked to clarify, just sort of
- 6:13Speaker 1: got asked sort of the same question again, just to
- 6:15Speaker 1: sort of get a him on the record. Kude, Ohios
- 6:17Speaker 1: date get backed into a corner where legislation that they
- 6:20Speaker 1: don't like forces them into making some kind of a
- 6:24Speaker 1: change with their.
- 6:24Speaker 3: Alignment potentially again.
- 6:26Speaker 2: I think that's where this is so fluid right now,
- 6:29Speaker 2: and everything is part of the conversation, right and that's
- 6:33Speaker 2: where we have to be really aligned with our Big
- 6:35Speaker 2: ten colleagues. We have to be aligned with our institutional leadership.
- 6:39Speaker 2: We will always have to do what's best for Ohio State.
- 6:42Speaker 2: That's the mandate. That's our job. Every single day. We
- 6:45Speaker 2: wake up every day thinking about that. What is best
- 6:47Speaker 2: for Ohio State. But then how does that layer into partnership,
- 6:50Speaker 2: how does that layer into the national land. Look, we
- 6:53Speaker 2: need the Big Ten to be healthy, right we do.
- 6:56Speaker 2: We need the Big Ten to be healthy. Knowing that
- 6:58Speaker 2: we're the you know, we're the really at the forefront
- 7:02Speaker 2: of that, but we need we need a viable conference
- 7:05Speaker 2: that we can rely on. But if we're forced to
- 7:08Speaker 2: do something else and you got to make decisions, then
- 7:11Speaker 2: you have to make those decisions whatever that might be.
- 7:13Speaker 1: Some of the proposals out there in front of in
- 7:17Speaker 1: front of Congress, and some of the elements of that
- 7:19Speaker 1: bill would suggest that leagues would not be allowed to
- 7:22Speaker 1: add teams, or at least big leagues would not be
- 7:24Speaker 1: allowed to add teams. If that bill in Congress passes
- 7:29Speaker 1: ways that they can sort of make it so you
- 7:30Speaker 1: can't change, you can't add members if you're over a
- 7:33Speaker 1: certain size. So if you're worried about that and you're
- 7:36Speaker 1: the Big Ten and you want to bring in teams,
- 7:38Speaker 1: could the league just potentially get ahead of that, And
- 7:40Speaker 1: just if the bill's not going to pass or go
- 7:42Speaker 1: into effect until later this fall or even next winter,
- 7:45Speaker 1: could the Big Ten just get ahead of that by
- 7:47Speaker 1: adding those teams.
- 7:47Speaker 3: Now, you know, I.
- 7:49Speaker 2: Actually saw I saw some articles floating around last night
- 7:52Speaker 2: that there's some outreach that people are doing. Other programs
- 7:56Speaker 2: are saying, should we try to get ahead of this
- 8:00Speaker 2: this bill? You know, I don't look if there's ever
- 8:03Speaker 2: if there's ever expansion, it has to be meaningful.
- 8:06Speaker 3: There's got to be a purpose.
- 8:08Speaker 2: It's got to drive either a scheduling piece to it,
- 8:12Speaker 2: and then it has to drive revenue.
- 8:15Speaker 3: You know.
- 8:16Speaker 2: I think one of the things that will be a
- 8:17Speaker 2: challenge coming up in the next i'd say one to
- 8:20Speaker 2: five years, is the West Coast teams in the Big
- 8:24Speaker 2: ten continuing to travel east and then our teams continuing
- 8:28Speaker 2: to travel west. Is that is that viable and sustainable?
- 8:32Speaker 2: Should we be more regional based in our scheduling. It
- 8:35Speaker 2: doesn't mean we can still have the Big Ten, but
- 8:37Speaker 2: maybe you have more regional scheduling within the Big Ten.
- 8:42Speaker 2: So to me, it has to be real strategic from
- 8:45Speaker 2: that standpoint.
- 8:47Speaker 1: You're trying to make these decisions about the future of
- 8:49Speaker 1: college football, and you're doing it with media rights deals
- 8:53Speaker 1: that aren't going to be up for another ten years.
- 8:56Speaker 1: The Fox deal not going to be up for ten years,
- 8:58Speaker 1: the CBS and NBC deals with the big ten those
- 9:00Speaker 1: are up in twenty thirty, so four more years. But
- 9:03Speaker 1: how accurately can you even project what these numbers are
- 9:06Speaker 1: that you're to be making these decisions based on when
- 9:09Speaker 1: you're looking at twenty thirty six, How can you project
- 9:12Speaker 1: those numbers accurately to be able to make any kind
- 9:14Speaker 1: of decisions on that stuff?
- 9:16Speaker 3: I mean, right now we have the biggest package right
- 9:18Speaker 3: in college sports.
- 9:20Speaker 2: You know, I think there's some really good data on
- 9:22Speaker 2: what maybe the early window, that twenty thirty window can
- 9:26Speaker 2: look like.
- 9:27Speaker 3: That process has not started. Fox is our partner in that.
- 9:31Speaker 2: So they'll be at the forefront of leading those conversations. Look,
- 9:36Speaker 2: the land, I mean, the media changes every year. There's
- 9:40Speaker 2: new technology, right and you know what we haven't really
- 9:43Speaker 2: seen in a broad way is the Amazon Prime, the Netflix,
- 9:48Speaker 2: the Apple. They've done it and you know, bits and chunks,
- 9:53Speaker 2: but have they bought an entire league yet? Right, So
- 9:57Speaker 2: those are the kind of things that in the next
- 9:58Speaker 2: ten years, who knows what it'll like, Who knows how
- 10:01Speaker 2: we're going to consume the content piece. There may be
- 10:04Speaker 2: a there may be a chip in our in our
- 10:07Speaker 2: ear that has a screen in front of us and
- 10:09Speaker 2: we're walking around and we're watching the World Cup, or
- 10:13Speaker 2: we're walking down the street like in a virtual like
- 10:15Speaker 2: we have no idea, or we're flying in a you know,
- 10:20Speaker 2: hella hella taxi watching the world like, we have no
- 10:24Speaker 2: idea what technology is going to do. So but I
- 10:27Speaker 2: think the point of that is it gives us opportunity,
- 10:30Speaker 2: you know, to expand it. Just it's so early and
- 10:33Speaker 2: so far away that things are going to change anymore.
- 10:36Speaker 1: When you look at the future of college athletics, there
- 10:39Speaker 1: is definitely not a one size fits all solution. You've
- 10:42Speaker 1: got Ohio State, you got Texas, You've got Georgia. You've
- 10:44Speaker 1: got these big, powerhouse national schools that are bringing in
- 10:48Speaker 1: a ton of money that can sink a ton of
- 10:50Speaker 1: money into different sports no problem. They can spend a
- 10:53Speaker 1: bunch of money on football, they can spend a bunch
- 10:55Speaker 1: of money in basketball. They can do whatever. They've got
- 10:57Speaker 1: the money to do it. Then you got other schools,
- 11:00Speaker 1: schools that are theoretically in power conferences, like Rutgers or Louisville.
- 11:04Speaker 1: They're losing money hand over fist. I mean, Rutgers has
- 11:07Speaker 1: maybe lost half a billion dollars billion with a b
- 11:11Speaker 1: over the last ten years or so. So in a
- 11:15Speaker 1: world where you can't just limit what players are earning,
- 11:17Speaker 1: you can't put a salary cap in place right now,
- 11:20Speaker 1: so those schools, it would seem like they can't really compete.
- 11:24Speaker 1: So are we going to get to a point where
- 11:27Speaker 1: only the elite to eight, ten fifteen schools can really
- 11:31Speaker 1: spend as much as they need to on football, basketball,
- 11:34Speaker 1: everything else and everyone else? Are they just going to
- 11:37Speaker 1: get left behind? Is there a solution for those other schools?
- 11:40Speaker 1: Is there a solution that can make Ohio State and
- 11:42Speaker 1: Rutgers happy?
- 11:43Speaker 2: You know, I think I don't know if I don't
- 11:46Speaker 2: know if I can predict that right, because no one
- 11:48Speaker 2: has that sort of crystal ball. I think this is
- 11:52Speaker 2: the challenge in the entire enterprise. And I'll just take
- 11:55Speaker 2: FBS right. And I was at Western Kentucky for two years,
- 12:00Speaker 2: and it was very very important that we called ourselves
- 12:05Speaker 2: a BCS program, right because the Sun Belt we were
- 12:10Speaker 2: in the Sunbelt at that time, had access to go
- 12:13Speaker 2: to the BCS, even though we knew deep down with
- 12:17Speaker 2: a twenty one million dollar budget that that was going
- 12:20Speaker 2: to be really hard, and it was the first year
- 12:22Speaker 2: of FBS football for Western Kentucky, my first year as
- 12:26Speaker 2: the athletic director. But it was very, very important that
- 12:30Speaker 2: we said we're a BCS program. So the problem with
- 12:34Speaker 2: our entire enterprise is it's all about attachment, it's about
- 12:39Speaker 2: brand association. It's about being sort of you know, in
- 12:42Speaker 2: the club if you will. We've got to be in
- 12:44Speaker 2: the A four, we've got to be in the FBS,
- 12:47Speaker 2: we've got to be a CFP team, We've got to
- 12:50Speaker 2: be a BCS team.
- 12:51Speaker 3: Right.
- 12:53Speaker 2: What's hard in our industry is here's our resources and
- 12:57Speaker 2: here's where we should aspire to. That's that's the crux
- 13:02Speaker 2: of the whole thing of what you just talked about
- 13:04Speaker 2: is our resource allocation is this, but we want to
- 13:07Speaker 2: belong to this and can we match that? And that's
- 13:12Speaker 2: and that's leading to institutions. Then it comes down to
- 13:16Speaker 2: is the institution prepared to say that athletics is a
- 13:20Speaker 2: strategic enterprise of the institution. Therefore we will make a
- 13:25Speaker 2: strategic investment in that enterprise.
- 13:27Speaker 3: Just like they do.
- 13:29Speaker 2: There's academic units that do not quote unquote make money,
- 13:33Speaker 2: but the institution makes a strategic investment. So you're actually
- 13:36Speaker 2: starting to see Virginia Tech is allocating you know, dollars
- 13:41Speaker 2: from the institution. I think Arkansas announced an allocation. Our
- 13:47Speaker 2: friends up north received an allocation from the institution, you
- 13:50Speaker 2: know for for their budget. You're starting Rutgers, you mentioned them,
- 13:55Speaker 2: But that that's really to kind of philosophically break down
- 13:59Speaker 2: your questions, Steve, That's the challenge is here's our economics,
- 14:04Speaker 2: here's what we aspire to. When those things don't match,
- 14:09Speaker 2: somebody's got to fill that gap. So I don't know
- 14:12Speaker 2: what the answer. The two things I know will kind
- 14:15Speaker 2: of get us to a place is how do we
- 14:17Speaker 2: develop cost certainty? I don't want to say cost containment,
- 14:22Speaker 2: cost certainty, and if the numbers go up every year,
- 14:26Speaker 2: at least you know what they are. But when you
- 14:28Speaker 2: don't know where the market's going to go, you don't
- 14:30Speaker 2: have certainty. Cost certainty and drive more revenue. That's the
- 14:36Speaker 2: chase certainty and drive revenue. That's what we all have
- 14:41Speaker 2: to move forward on.
- 14:44Speaker 1: All Right, that will do it for today's show. If
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- 15:01Speaker 1: We are in July now and Big ten Media days
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